2020-2021 Loan Information & Application Packet

BELMONT UNIVERSITY 2020–2021

LOAN INFORMATION & APPLICATION PACKET

Nashville, TN

HOW TO ACCEPT OR DECLINE DIRECT STUDENT and PARENT PLUS LOANS If you plan to borrow Direct Stafford or Parent PLUS loans, you must accept those loans through your MyBelmont account.

• Log into your MyBelmont account. Please note: You will create a MyBelmont once your enrollment deposit has been received.

• Select the Banner Web Icon located in the upper left hand corner • Select the Student Services and Financial Aid tab

• Select the Financial Aid tab • Select the Award Information tab • Select Award by Aid Year • From the drop down box, select 2020–21 Aid Year. Click the submit button.

• Select the accept award offer tab.

• From the drop down box located next to each Direct Stafford Loan or Parent PLUS Loan, select Accept or Decline. Click the submit button.

Federal Direct Stafford Loans Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education. The lender is the U.S. Department of Education rather than a bank or other financial institution, and you will be assigned a servicer for loan repayment. Students must complete a FAFSA to receive Direct Stafford Loans.

PLEASE NOTE: You will need to accept your student loans each year you receive a financial aid offer. Once you accept your loans, you must still complete all the required paperwork before the loan will be processed. If you are borrowing a Graduate PLUS loan, you do not need to accept this loan option. We will process your Graduate PLUS loan once we receive your loan application.

PLUS borrowers cannot have an adverse credit history (a credit check will be done). Students must complete a FAFSA to receive a Direct Parent PLUS loan.

PARENT ELIGIBILITY REQUIREMENTS FOR A DIRECT PLUS LOAN You must be the parent (biological, adoptive or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at a participating school. If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA. In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.

HOW TO APPLY FOR A FEDERAL DIRECT PLUS LOAN • To apply for a Parent PLUS loan, parent borrowers are required to use their FSA User IDs (not their student’s FSA ID). If a parent does not have a FSA User ID, please visit fsaid.ed.gov to create one.

HOW TO APPLY FOR STAFFORD LOANS PLEASE NOTE: All Stafford loan paperwork must be completed by the student borrower.

• To borrow a Direct Stafford Loan for the first time, you must complete a Master Promissory Note (MPN) online at studentaid.gov. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees.

• To take out a Direct Loan, the parent borrower must complete both a PLUS Credit Application and Master Promissory Note (PLUS MPN).

• Complete the Parent PLUS Loan Credit Application online at studentaid.gov. Choose Apply for Aid, Choose Applying for a PLUS Loan and select the Parent PLUS Loan option. As you (the parent borrower) complete the Credit Application, please indicate the amount of PLUS loan funds you wish to borrow.

TYPES OF FEDERAL DIRECT STAFFORD LOANS Subsidized: for undergraduate students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, and during periods of deferment.

• To complete an MPN online, you will be required to use your (the student) FSA User ID. If you do not have a FSA User ID, you may request one through fsaid.ed.gov. Choose Complete Aid Process, Choose Sign Loan Agreeement, and then choose the Subsidized/Unsubsidized Loan MPN.

• Complete the Parent PLUS MPN online at studentaid.gov. Choose Complete Aid Process, Choose Apply for Aid, Choose Sign Loan Agreement, and select the PLUS MPN for Parents. The PLUS MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).

NOTE: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

Repayment begins following a six-month grace period after you graduate, leave school or cease being enrolled as at least a half-time student.

• If you wish to borrow less than the amount listed on your award letter, complete the Loan Reduction Form. You may access this form online at belmont.edu/sfs by selecting the Forms link.

• If you wish to change your loan amount after you complete the application, please complete the Loan Reduction Form. You may access this form online at belmont.edu/sfs by selecting the Forms link.

• In most cases, once you’ve submitted the MPN and it’s been accepted, you won’t have to fill out a new MPN for future loans you receive. You’ll receive a disclosure statement with specific information about any loan that will disburse under your MPN, including the loan amount, fees and the expected disbursement dates and amounts.

• If you are borrowing Direct PLUS Loans for more than one student, you’ll need to complete a separate PLUS MPN and Credit Approval for each student.

Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue and be added to the principal amount of your loan.

Repayment begins following a six-month grace period after you graduate, leave school or cease being enrolled as at least a half-time student.

FEDERAL DIRECT STAFFORD LOAN ANNUAL BORROWING LIMITS The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. Please see the following table:

DEPENDENT STUDENT1

INDEPENDENT STUDENT2

1st-year undergraduate (Freshman)

$5,500 (maximum $3,500 subsidized)

$9,500 ($3,500)3

2nd-year undergraduate (Sophomore)

$6,500 ($4,500)

$10,500 ($4,500)

3rd- & 4th-year undergraduate (Junior & Senior)

$7,500 ($5,500)

$12,500 ($5,500)

NA (All graduate and Graduate/Professional/Law

professional students are considered independent.)

$20,500

NA (All graduate and Pharmacy

professional students are considered independent.)

$33,000

1 Except those whose parents are unable to borrow a PLUS loan.

2 These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.

3 The numbers in parentheses represent the maximum amount that may be subsidized.

PLEASE REMEMBER: Your Stafford MPN must be completed at least ONE MONTH prior to the payment due date.

ENTRANCE COUNSELING Students must complete entrance counseling before the first disbursement of your loan can be applied to your account. Entrance counseling helps you to understand your responsibilities as a loan borrower.

• Complete entrance counseling online at studentaid.gov.

• Sign in using your (the student) FSA User ID • Choose Complete Aid Process • Select Complete Entrance Counseling BE ADVISED: You must be degree seeking and enrolled at least halftime (undergraduates: six credit hours; and graduates: three graduate credit hours) to borrow federal loan money.

For undergraduate students: During the loan certification process, if the number of completed credit hours differs from the student’s reported grade level on the FAFSA, the Stafford Loan amount(s) must be adjusted accordingly. Your earned credit hours and financial need determine the amount you are eligible to borrow.

Belmont’s undergraduate grade levels are determined by the number of earned hours below: Freshman 0–29

Sophomore: 30–63

Junior 64–93

Senior: 94+

Federal Direct Parent PLUS Loans PLEASE NOTE: All Parent PLUS loan paperwork must be completed by the parent borrower.

Parent PLUS Loans are credit-based loans for parents of undergraduate, dependent students. Parents may apply for these loans and may use the funds to help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

• In most cases, once you’ve submitted the PLUS MPN and it’s been accepted, you won’t have to fill out a new PLUS MPN for future loans you receive, but parent borrowers will need to complete a Parent PLUS Loan Credit Application each year PLUS loan funds are needed. Borrowers will receive a disclosure statement that provides specific information about any loan that will disburse, including the loan amount, fees and the expected disbursement dates and amounts. (Loans cannot disburse to Belmont until 10 days prior to classes beginning.)

PLEASE REMEMBER: Your PLUS MPN and Credit Application must be completed at least ONE MONTH prior to the university published payment due dates. (You can access the dates online at belmont.edu/sfs by selecting the Important Information link.)

The PLUS Loan Credit Application will check your credit history. If you are determined to have an adverse credit history, you may still receive a Direct PLUS Loan if you obtain an approved endorser. If you are a parent borrowing on behalf of your dependent student, the endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document that there are extenuating circumstances related to your adverse credit history. If a parent does use an endorser, the Parent PLUS Loan borrower must complete PLUS Credit Counseling and a new MPN through studentaid.gov prior to the PLUS loan disbursing.

If you are still denied the PLUS loan, students will gain additional Unsubsidized Direct Stafford Loan eligibility. (Please see the Independent student annual borrowing limits.) Students must request the additional funds by completing the PLUS Denial/Request for Unsubsidized Loan form. You may access this form online at belmont.edu/sfs by selecting the Forms link.

BE ADVISED: Students must be degree seeking and enrolled at least half-time (undergraduates: six credit hours) to receive Direct Loan funds.

Federal Direct PLUS Loans for Graduates PLEASE NOTE: All Graduate PLUS loan paperwork must be completed by the student borrower.

Direct Graduate PLUS Loans are credit-based loans for graduate students.

Graduate students may apply for these loans and, if approved, may use the funds to help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. PLUS loan borrowers cannot have an adverse credit history (a credit check will be done). Students must complete a FAFSA to receive Direct Graduate PLUS loans.

HOW TO APPLY • To apply for a Graduate PLUS loan, you will be required to use your FSA User ID. If you do not have a FSA User ID, please visit fsaid.ed.gov.

• To borrow a Graduate PLUS loan for the first time, you must complete a PLUS Credit Application and Master Promissory Note (PLUS MPN).

• Complete the Graduate PLUS Loan Credit Application online at studentaid.gov. Choose Apply for Aid, Choose Applying for a PLUS loan, and select the Grad PLUS Loan option. As you (the student) complete the credit application, please indicate the amount of PLUS loan funds you wish to borrow.

• Complete the Grad PLUS MPN online at studentaid.gov. Choose Complete Aid Process, Choose Sign Loan Agreement, and select the PLUS MPN for Graduate/Professional Students. The PLUS MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).

• If you wish to change your loan amount after you complete the loan application, please complete the Loan Reduction Form. You may access this form online at belmont.edu/sfs by selecting the Forms link.

• In most cases, once you’ve submitted the Grad PLUS MPN and it’s been accepted, you won’t have to fill out a new PLUS MPN for future loans you receive, but you will need to complete a Graduate PLUS Loan Credit Application each year you intend to borrow a PLUS loan. You’ll receive a disclosure statement that gives you specific information about any loan that will disburse under your PLUS MPN, including the loan amount, fees and the expected disbursement dates and amounts. (Loans cannot disburse to your student account until 10 days prior to classes beginning).

PLEASE REMEMBER: Your Graduate PLUS MPN and Credit Application must be completed at least ONE MONTH prior to the university published payment due dates. (You can access the dates online at belmont.edu/sfs by selecting the Important Information link.)

The Direct Graduate PLUS Loan Credit Application will check your credit history. If you are determined to have an adverse credit history, you may still receive a Direct Graduate PLUS Loan if you obtain an approved endorser. An endorser is someone who agrees to repay the Direct Graduate PLUS Loan if you do not repay the loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document that there are extenuating circumstances related to your adverse credit history.

If a student does use an endorser, the Graduate PLUS Loan borrower must complete PLUS Credit Counseling and a new MPN through studentaid.gov prior to the PLUS loan disbursing.

BE ADVISED: Students must be degree seeking and enrolled at least half-time (graduates: three graduate credit hours) to borrow federal loan money.

ENTRANCE COUNSELING You must complete entrance counseling as a graduate student before the first disbursement of your loan can be applied to your account. If you’ve borrowed Direct Loans as an undergraduate student, you will still need to complete Entrance Counseling as a graduate student before any graduate loans will disburse.

Entrance counseling helps you understand your responsibilities regarding your loan.

• Complete entrance counseling online at studentaid.gov.

• Sign in using your FSA Student ID • Select the Complete Aid Process • Select Complete Entrance Counseling

Frequently Asked Questions 1

What are the interest rates for Direct Loans?

Are there any fees associated with my loans?

5 When should I complete my MPN and

All Direct Loans do have origination fees assessed by the Department of Education (DOE) at the time of disbursement. The DOE will disburse to Belmont the net amount of your loan (the borrowed amount minus the origination fee) each semester. These fees change annually on October 1st. Direct Loans have fixed interest rates, but the interest rates for any new loans change each year on July 1st. Please visit studentaid.ed.gov/sa/types/loans/interest-rates for more information on the current interest rates and origination fees.

credit applications for Direct Loans?

6 Do I need to complete a new MPN each year?

You may borrow under the same MPN for up to 10 years in most cases. However, for Parent PLUS and Graduate PLUS loans, you must complete a Direct PLUS Loan Credit Application each year for a new pre-approval and credit check. Each time an endorser is added to a Parent or Graduate PLUS loan, the borrower must complete a new MPN and PLUS Credit Counseling.

7

How long does it take for the loan to be processed once received by Belmont?

Please allow three to four weeks for loan processing.

2 How do I know who my servicer is?

Students and parents will be assigned a Direct Loan servicer soon after the first disbursement of a loan. The servicer will contact you via email or letter, and you can also view servicer information through studentaid.gov using FSA User ID Information.

3 Why can’t I borrow any amount I want as I’ll be responsible for repaying the loans?

8 Why do I need to complete a FAFSA?

Federal guidelines require schools to create a yearly Cost of Attendance that includes allocations for living expenses, personal expenses and transportation, as well as tuition, fees and books. Your total financial aid package cannot exceed this Cost of Attendance.

4 How much should I borrow in a PLUS loan?

New MPNs and credit applications should be completed by July for the fall, November for the spring and May for the summer.

Your FAFSA determines what type of financial aid you receive. Direct Stafford Loans, Pell Grants, Institutional Aid, and many other programs are dependent upon your level of financial need. Completing a FAFSA will allow you access to the broadest range of financial assistance.

9 If I previously borrowed federal loans at another

Parents and Graduate Students may borrow a PLUS loan up to the student’s Cost of Attendance minus any other financial aid resourcesgrants, scholarships, other loans, etc.. If you select the maximum amount during the credit application process, we will process your Parent or Graduate PLUS loan up to the full Cost of Attendance. If you chose Unknown Loan Amount during the credit application process, the borrower will need to contact our office to notify us of the amount to process. We encourage you to only borrow what you need. Please see the Loan Repayment section of our website (belmont.edu/sfs/loans/repayment.html) for the Loan Repayment Estimator and other repayment information.

university, do I need to complete a new MPN?

Unless you have previously borrowed through the Federal Direct Loan program and have an active MPN on file with the Department of Education, you will need to complete a new MPN and entrance counseling to receive loan funds at Belmont.

From Here to Anywhere Office of Student Financial Services • 1900 Belmont Boulevard • Nashville, TN 37212 800.563.6765 or 615.460.6403 • finaid@belmont.edu • BELMONT.EDU To read Belmont’s nondiscrimination statement, visit BELMONT.EDU/NONDISCRIMINATION. Cover illustration by Lucie Rice

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